TagMagnificent seven tech companies
Do High AI Startup Valuations Mean Great Success, or Desperation?
The answer is important but is not as clear as we might think. First, let's look at the backgroundConsider a recent news report: “Anthropic is in advanced talks to raise $2 billion in a deal that would value it at $60 billion, more than triple its valuation from a year ago” says the Wall Street Journal. Anthropic’s last venture capital (VC) funding round, less than two months ago, raised $2 billion, bringing its total funding to $9.6 billion. OpenAI had raised $6.6 billion, last October just a year after it raised $10 billion from Microsoft the previous year and just months after it also raised funds on the debt and secondary markets. So that $6.6 billion round was the largest VC funding round ever, a little larger than the $6 billion that Elon Musk’s generative AI startup, xAI, raised in 2023. Read More ›